Bitcoin and gold as a safe haven asset during the pandemic

Abstract

The pandemic that hit the world in 2020 has left unforeseeable consequences for the entire world economy. Bitcoin and gold are currencies whose prices have risen despite the crisis period. The results of the research, using Spearman's correlation coefficient, showed a statistically significant relationship between the movement of the price of bitcoin and the price of gold, which can be the basis for predicting the movement of the price of gold in the future, based on the movement of the price of bitcoin. A significant relationship was found between the movement of the bitcoin price and the increase in the number of users of bitcoin wallets, which clearly indicates an increase in the volume of trade in this currency and a wider representation of this currency. Theoretical research of behavioral economics has confirmed the hypothesis that when the financial system is exposed to a crisis, bitcoin and gold will have the characteristics of a "safe haven asset" which can be explained by the principles of behavioral economics.